Pattern Play Bank of America
Downside breakout from a symmetrical triangle.
Share this:
Bank of America (BAC), the financial institution, gapped to the downside of a symmetrical triangle pattern on Monday, September 21st. A symmetrical triangle is considered to be a continuation pattern and before price began to form the symmetrical triangle back in mid-March, price was in a steep short-term downtrend. The RSI is currently sitting around 33 and shows downside momentum. Yesterday's price action created a long legged doji candle stick, which could be signaling a possible reversal as it appeared at the bottom of a short-term downtrend. If today's price action does not get below the doji candle, it could mean that price is getting ready to pullback. If price turns up, traders should watch the lower trendline around the 25.50 level for resistance. If price can hold below the resistance area, then price will likely continue downward and reach for 22.50 again. If price breaks below 22.50, it could continue falling towards 20.25. On the other hand, if price cannot be stopped at the 25.50 level or the lower trendline, price could potentially pop back up and head for 27.50. If this occurs it would mean that the breakout from symmetrical triangle pattern failed and traders could look to play the upside.
Source: GAIN Capital, TradingView
Source: GAIN Capital, TradingView
Bank of America (BAC), the financial institution, gapped to the downside of a symmetrical triangle pattern on Monday, September 21st. A symmetrical triangle is considered to be a continuation pattern and before price began to form the symmetrical triangle back in mid-March, price was in a steep short-term downtrend. The RSI is currently sitting around 33 and shows downside momentum. Yesterday's price action created a long legged doji candle stick, which could be signaling a possible reversal as it appeared at the bottom of a short-term downtrend. If today's price action does not get below the doji candle, it could mean that price is getting ready to pullback. If price turns up, traders should watch the lower trendline around the 25.50 level for resistance. If price can hold below the resistance area, then price will likely continue downward and reach for 22.50 again. If price breaks below 22.50, it could continue falling towards 20.25. On the other hand, if price cannot be stopped at the 25.50 level or the lower trendline, price could potentially pop back up and head for 27.50. If this occurs it would mean that the breakout from symmetrical triangle pattern failed and traders could look to play the upside.
Source: GAIN Capital, TradingView
Source: GAIN Capital, TradingView
Related tags:
Latest market news
The complete CFD trading experience
Award-winning platforms, competitive spreads, low commissions and dedicated support.
We live and breathe the markets and are dedicated to helping traders realise their ambitions as we continue to set the industry bar.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Australian Dollar Short-term Outlook: AUD/USD 3% Plunge Puts Multi-Month Range at Risk 11 6 2026
A sharp equity-led selloff has driven AUD/USD toward critical June-low support, with strong NFP data adding pressure ahead of next week’s U.S. CPI.
DAX Weakens as Tech and Defence Stocks Come Under Pressure
European equities are under pressure as the global technology selloff extends into a second session. Concerns about AI-related capital expenditure, semiconductor demand and regulatory risks are weighing heavily on technology stocks, while rising oil prices add another layer of uncertainty. With the US jobs report due later today, investors are reassessing valuations, growth expectations and the outlook for interest rates.
Nikkei 225 bear market deepens as volatility surges
The Nikkei has entered a technical bear market following a historic plunge. RSI and ATR stretch readings suggest a bounce may be coming, but history carries a warning for dip buyers.
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.